This document provides a comparative study of the tea industries in the Brahmaputra Valley and Barak Valley regions of Assam, India. It traces the origins and development of tea cultivation in both regions from the 19th century under British rule up to recent times. While tea cultivation began earlier and was more extensive in the Brahmaputra Valley, the industry has faced problems in both regions in recent decades due to diseases, lack of investment, and low productivity. The document concludes by calling for modernization and improved management to help regain the past economic importance of tea cultivation in Assam.

1. Presented By:
MITHISAR BASUMATARY
NIT SILCHAR
PRESENTATION ON
COMPARATIVE STUDY ON BARAK VALLEY
& BRAHMAPUTRA VALLEY TEA INDUSTRY

2. INTRODUCTION
The state of Assam was brought under the British dominion in 1828.
The tea industry played a vital role in the economy of the state.
Assam tea was not restricted in the state alone; it was exported to other parts of
India and outside of it.
Capital was invested by the European planters.
With these land and capital, labour came as ‘coolies’ from northern, eastern and
southern part of India. This made the state of Assam economically rich.
The present state of Assam is comprised of three physical divisions, namely, the
Brahmaputra Valley, the Barak Valley and the Hill range. The Brahmaputra Valley,
which forms northern part, is the largest in size comprising 71.7 percent of total
geographical area of the state. On the other hand the Barak Valley region, which forms
the southern part, is comparatively smaller in size.

3. ORIGN OF TEA CULTIVATION
 The first discovery of tea in Assam is generally ascribed to Mr. Robert Bruce,
who commanded a division of gunboats in Upper Assam during the first Burmese
war, and who appears to have brought down with him some shrubs and seeds of
the Indigenous plant in 1826.
 In the year 1834 Government of India formed a tea committee consisting of 12
members of whom 10 were Europeans and 2 Indians to explore possibilities of
profitable tea cultivation in Assam.
 In December, 1837, 12 boxes of tea were shipped to London and this
wasllowed in the next year by another lot of 95 chests. On examination tea was
found equally good with that of China.
In 1838 for cultivation and manufacture of Assam tea the Bengal Association
was formed.
To avoid an amalgamation under the title Assam Tea Company up on a capital
of £500,000 in 100,000 shares of £50 each, which is the first and largest tea
grower.

4. CONTINUED….
 In 1852, it had 15 gardens in Sibsagar with a cultivation varying from 15 to 400
acres in each; the aggregate cultivated area amounted to 2500 acres.
 During 1867 and 1868 the depression of tea property continued, but about
1869 matters began to mend and since then the cultivation and manufacture of
tea has been steadily on the increase.
By the end of 1874, the total area under tea cultivation in Sibsagar District was
22,573 acres; the total out turn was 4,528,329 lbs. The total area taken up in
Sibsagar under Assam Waste Land Rules for tea cultivation amounted at the end
of 1874 to 108,050 acres

5. ASSAM TEA COMPANY: BRAHMAPUTRA
VALLEY EXPERIENCE
 Under J.W. Masters Assam Company set up an establishment of their own at
Nazira.
In March 1840, C.A. Bruce joined his new assignment and was placed in charge
of the Northern Division comprising tracts Kahung, Tipam, Nowholea, Jagando and
Ningro.
In 1853 dividend of 3% was declared for the shareholders and extension of new
rules of Waste Land tenures to Upper Assam had enabled the Assam Company to
expand operations.
 In 1857 Colonel Hannay opened a garden at Chawlkhowa, near Dibrugarh, and
factories were started at Mothola and Bajalani.
In the next year Warren Jenkins formed the Maijan Company and emerged the
estates of Bokapara, Barbarua, Nagaghuli and Deasal in the Lakhimpur
district(Presently Dibrugarh district).
In 1859 Jorehaut Tea Company was incorporated with a capital of £60,000. The

6. CONTINUED….
 Up to the end of 1866, not less than £150,000 had been spent on tea property in
the district. In that year about 1500 acres under tea were abandoned .
 In 1871, the yield of tea estimated to about 303,000 lbs and the net profit realised
after deducting the cost of production and sale to be not less than from £4000 to
£5000.
 In 1871 there were about ninety tea plantation in the District, divided among nine
or ten companies and several private individuals. These gave employment to about
fifty European managers and assistants, and upwards of five thousand imported
coolies, in addition to local labourers and native sub-ordinates.

7. BARAK VALLEY EXPERIENCE
 In 1855 a native discovered some indigenous tea plants specimen in the
jungles of the district of Cachar.
 The fact was ultimately reported to the Government in July 1855 and in that
month Williamson of Assam Company applied for forest land for the purpose of
cultivating tea in Cachar.
The first tea garden was opened in the cold weather of 1856 in the mauza
Barsangan.
The progress of tea industry became regular since 1869. In that year total area
under cultivation was 24,151 acres and out-turn was 4,234,794 lbs.
171 grants were made in 1870 and area under cultivation was 4, 84,760 acres.
In 1872, tea gardens for the failure of the grantees were 70.
In 1874, the extent of land held in grants under old Assam rule was 60,520
acres, under fee simple rule 1, 14,095 acres and under cultivation leases 31,452
acres.

8. CONTINUED….
 Out of the total land (2,08,488 acres) available in Cachar for tea cultivation up to
1875-76 only 82,759 acres were found fit for the purpose.
During 1922-23 in Cachar there was an increase of 3 estates, of 131 acres in
area and of Rs.341 in revenue due to settlement of new or relinquished lands.

9. IMPACT ON ECONOMY
 Various strike and violent mass attack took place as a result of absconding
and litigation both in Brahmaputra and Barak Valley between 1884 and 1893.
Low wages, rising prices of commodities, excessive toil, unhealthy
environment and exploitation of the planters worsened coolie people’s living in
the gardens.
 On 27th April, 1939 Sylhet-Cachar Cha-Bagan Mazdur Union was formed.
 Gardens were sold for 700 or 800 percent more than they had cost to make,
and in some cases the plantations when they changed hands existed only on
paper.
 The crash came in 1866 when many tea companies collapsed, and the
period of depression continued till 1869.
 In 1882 the area under tea cultivation was 48,873 acres and the yield
amounted to 12,721,000 lbs.
 There were 199 gardens in 1895, 159 in 1915 and 176 in 1928.

10. RECENT STATUS OF ECONOMY
 The economy of Assam is pre-dominantly agrarian in character.
 The growth rate of NSDP at factor cost has been slower in the post-reform period
than that of all-India NDP at factor cost.
 Between 1994-95 and 2003-04 for which comparable data is available at 1993-
94 prices, NSDP at factor cost increased by 2.95% whereas for the country as a
whole NDP at factor cost grew by 6.2% during the same period.
 Despite the fact that agriculture is at the centre stage of the state’s economy,
agricultural production and productivity in Assam has grown at a slow pace.
 The conditions of tea estates in the state are not as productive as in the past.
Indeed, the tea estate in the state has been facing a major problem due to termite
infestation and back-rot diseases.

12. CONTINUED….
 As it appears from the table that the total area under tea cultivation in Assam
accounted for more than half of the country’s total area under tea.
 During 2007 the yield of tea in Assam was 1593 kg per hectare as compared to
1705 kg in All India.
 The compound growth of tea industries in Barak Valley, Assam and All India
shows more or less a stagnant one.

13. CONTINUED….
 Over the last decade also, there has been a significant development in the tea-
growing region of upper Assam in the form of emergence of small tea growers.
 The emergence of small tea growers, many households and co-operatives have
started producing green leafs, which has significantly contributed in the growth of
tea production in recent years.
 As per Tea Board of India statistics there are 52000 small tea growers in Assam
at the end of March 2009 out of which 3767 were registered with the Tea Board of
India.
 Most of the small tea gardens in the State are confined to upper Assam.
Dibrugarh accounts for 30 percent of the total tea gardens followed by Tinsukia 22
percent, Jorhat 13 percent, Golaghat 12 percent, Sivasagar 11 percent and other
districts contain 11 percent.
The addition to tea hectare by around 50 thousand hectares in the latter half of
1990's was possible mainly through conversion of agricultural land with below 10
hectares being the cut off point of land for small tea growers.

14. CONTINUED….
 However, such a trend is absent in the Barak Valley region.
 A considerable number of tea gardens of the state have gone sick over the period
due to lack of infrastructure, modernisation and efficient management.
 Though Assam tea is still earning around 50 per cent of the foreign exchange
earned by India's tea industry, its demand is already in recession due to better
quality-tea supplied by countries like Sri Lanka, Cuba etc. at comparatively lower
prices.

15. CONCLUSION
 The tea industry in India had originated in the state of Assam.
 In due course tea became one of the major industries in India earning foreign
exchange.
 However, unfortunately the glorious past of tea industries of the state could not be
sustained since 1990s.
 The relatively lower yield of tea in the region and the recent problems of diseases
and pest attack encountered by the planters in the region might work to prevent the
emergence of small tea growers in Barak Valley.
 Better price realization of tea critically depends upon increasing market share
through better productivity and also creating a niche in the value added segment
through product innovation.
 Another most serious ailment remains low investment on infrastructure and low
managerial efficiency.

16. CONTINUED….
 The problems of high cost of production and low yield need be addressed on an
urgent basis.
 The tea industry should be modernised with a change in technique of plantation,
improvement of encouragement to the electronic tea auction and managerial
excellence.
 Considering the rich history of origin of tea in the state of Assam, all out effort by
the state government should be initiated for regaining the past glory as this sector
still continues to be the major driver of leading to economic growth in the state.

17. THANK YOU